Key Transaction Details

The Board of Directors of Alfa Transformers Limited at its meeting held on 19th June 2026 approved the transfer by way of slump sale of its Vadodara Unit as a going concern. The meeting commenced at 3:00 PM and concluded at 5:50 PM.

Financial Performance of Vadodara Unit

  • Revenue for year ended 31st March 2026: ₹10.49 crore
  • Financial losses for year ended 31st March 2026: ₹2.72 crore
  • Total accumulated losses as of 31st March 2026: ₹15.81 crore

Transaction Structure

  • Business Transfer Agreement executed on 19th June 2026
  • Consideration: ₹18.00 crore in cash, free of all debts
  • Consideration subject to adjustment of changes in Working Capital as on closing date
  • Expected completion date: within next three months (by 18th September 2026)

Counterparty Details

Buyer: KASST Industries Limited, an Indian unlisted company

  • Proposed to be engaged in manufacturing and marketing of transformers
  • Incorporated during FY 2026 (no previous revenue data available)
  • Not belonging to Promoter & Promoter Group/Group Companies of Alfa Transformers

Regulatory Approvals Required

  • Shareholder approval required under Section 180 of Companies Act, 2013
  • Compliance with Regulation 37A of SEBI (LODR) Regulations, 2015
  • Transaction is not a Related Party Transaction
  • Transaction not undertaken through Scheme of Arrangement

Business Operations

Vadodara Unit business: manufacturing, designing and repairing of distribution transformers

Buyer's proposed business: manufacturing and marketing of transformers

Rationale for Slump Sale

  • Vadodara Unit incurred substantial losses during immediately preceding year
  • Accumulated losses of ₹15.81 crore as of 31st March 2026
  • Facing operational difficulties due to working capital constraints
  • Requires immediate Working Capital Funding to make operations viable
  • Risk of liquidated damages due to delay in transformer supply
  • Proposed slump sale will make the company debt free

Capital Structure Impact

No change in the shareholding pattern of the Company on account of Sale of Vadodara Unit